The rupee recovered by 23 paise to 61.32 against the dollar in early trade today at the Interbank Foreign Exchange following selling of the American currency by exporters and banks.
A higher opening in the domestic equity market and a weak dollar against other currencies overseas also supported the gain in rupee, forex dealers said.
The rupee had lost 48 paise to close at 61.55 against the dollar in yesterday's trade after weak inflation and industrial output data amid fresh demand from importers for the US currency.
Meanwhile, the BSE benchmark index Sensex spurted by 142.95 points, or 0.69 per cent, to 20,750.49 in early trade today.
